New study finds one surprising way to improve your finances in 2026
Why teaching someone ‘how to save’ often fails
- Traditional financial education, which often focuses on teaching facts and formulas, frequently fails to translate into effective financial habits.
- New research indicates that a more abstract and flexible learning approach, enabling individuals to apply principles in unfamiliar situations, is more effective than rigid instruction.
- An experiment with undergraduate students demonstrated that those who engaged in hands-on, strategic thinking challenges were significantly more likely to adopt positive financial behaviours.
- This flexible learning method helps individuals develop mental models that allow them to navigate unexpected financial scenarios and make informed trade-offs.
- The study concludes that teaching people how to think about finances, rather than simply what to think, is crucial for fostering adaptable and effective financial decision-making.